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Solar Water Heater Rebate

Federal Government
Savings Category 
Solar Water Heat
Program Info
Sector Name 
Hawaii Energy
Funding Source 

Public Benefits Fund

Program Type 
Rebate Program
Rebate Amount 

Residential Solar Water Heating: $1,000 upfront, or
Residential Solar Water Heating Interest Loan Buy-Down: $1,000
Commercial: $250 per 12,000 Btu/hr derated capacity

Hawaii Energy, a third-party administered public benefits fund, provides incentives for energy efficiency and conservation to customers of the Hawaiian Electric Company (HECO) and its subsidiaries, Maui Electric Company (MECO) and Hawaii Electric Light Company (HELCO). This incentive is available for installations on the islands of Oahu, Hawaii, Maui, Lanai and Molokai.

Residential utility customers in Hawaii, Honolulu, and Maui counties can choose between a direct upfront rebate of $1,000 or a $1,000 interest rate buydown. They cannot receive both. The upfront incentive is paid to the installer and deducted from the customer's final bill. The interest rate buydown is paid to participating lenders. The lender, in turn, will provide the customer with a 0% or low interest loan depending on the customer's credit and/or the financial institution. The commercial rebate for solar water heaters take a prescriptive approach, but are evaluated on a case-by-case basis for utility customers in Hawaii, Honolulu, and Maui counties. Commercial customers receive varying incentives for solar water heating.

Hawaii Energy provides a list of participating contractors that have agreed to comply with the programs' rigorous standards regarding equipment use and installation. A participating contractor will visit the home or business, analyze the building's hot water usage, and provide a bid for a complete installation, including the anticipated energy savings. Hawaii Energy will perform a comprehensive post-installation inspection to ensure the system was installed to meet the proper standards. Customers may also qualify for the Hawaii State Energy Tax Credit and the federal tax credit for solar water heaters.